Sprint Deal: Winners and Losers

This transcript has been automatically generated and may not be 100% accurate.

... I ... welcome to Digits I'm Simon Constable ... as the final a an antidote to this point a deal from up after weeks of negotiations with Dish and Softbank's plan shareholders voted to approve ... Softbank's twenty one point six ... billion dollar deal ... and with the masses of the Taylors have been wearing Gottfried ... thank you for being here my pleasure ... this is been a saga of Reno aam did fish dropping out ... this promotion on all this twenty think is is is is that I've that could move of that move with the windows while I mean soft pink ... is definitely a winner it's gotten what it wanted its kind the pri is sprayed into a foothold in the U S market ... aam the third elect from the third largest carrier ... aam ... in the U S with a lot of growth potential if something can achieve ... what it thinks it can she come and bring ... Sprint's average revenue previews or up to the level of CIA Verizon wireless in eighteen T ... but that's a big and so they're they're a lot of challenges facing this company so it isn't just a matter of throwing money at an event the ticket to go to throw money at it until they get through some FCC approval that's right and then they go to execute on that so the designs to get those things up and I can be rather tricky ... I mean they're expected to get the FCC approval at this point aam by ... the half to build out ... of udon ... EO a much more extensive next-generation network for spring in order to get up to speed with where eighteen T Verizon RGR ... meanwhile Sprint's losing custom areas ... aam ... and you know that ... it needs to be able to eighteen customers by giving them the same quality of service that they can get it at competitor ... and also the customer service number of houses Sprint customer wants and I'm that that was of an interesting day they can fix parents ... lose a citizen Dish might've been a big loss there with ... that kept at it it's hard to say they intend to buy a spray dish ... our wouldn't have to take on a tremendous amount of debt and the combined company ... as I've written about in my column a number of times would of been hindered by Baghdad and ... in that building a wireless network is an incredibly capital intensive processing you need to have the financial flexibility to do that ... aam and it is a dish might not of had that if it had taken on that that that that needed to get this deal ... someone one of things I was think about about details like this one where it's heavy it's it's all it's all fixed costs by sitting on the wallet but is it September overwhelming them out of fixed rates ... on the light that building now credit spread one to fill the canal even when the ship some done a fine ... with this one to fill them and what you can have a honey users and heat wanted to kill profits that's basically true any ... that's what you don't just have someone running in and saying I can do this better than you guys I'm asserting wireless network ... it's really a capital intensive business and ... spectrum ... which Dish does have had and which Sprint still needs more of them ... is ... the really the key commodity now because in order to build these networks he he he the spectrum and that's why Sprint still has a battle ahead of it ... potentially to get Clearwire although looks like it's probably is probably got that taken care to do with them and the index it's ... now will be a great time when that because interest rates is still relatively low and you now and it's not like it was ten years ago sigh when interest rates were much much higher and you could really be funny showing ... shoveling cash ... bondholders every month ... chore but I mean we don't know how much longer that will last in ... Mountain view this this kind of it being as it ... is referred to the very nimble with your cash ... on when the FCC options off the new spectrum you gotta be right there to get it ... otherwise or to miss out on opportunity to build a more robust networks in place in the Senate don't have that somehow to try to become the second half to death yesterday without any FCC direction that's right I'm that's what Clearwire is as I said still and really important component for Sprint ... can ... custom stuff made with the sun is coming to a